FTSE 100 dividend stock GlaxoSmithKline isn’t the only healthcare star that could help you retire rich

Royston Wild explains why GlaxoSmithKline plc (LON: GSK) is just one London-quoted healthcare stock that could make you rich.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I would consider GlaxoSmithKline (LSE: GSK) to be a top-class pick for investors to make a fortune. And not only on account of its monster 5.1% dividend yield.

As my colleague Edward Sheldon recently commented, the world is set to experience a boom in the number of so-called silver surfers in the coming decades, a surge in the number of citizens over the age of 60. With this comes rising healthcare demand, naturally, and this is a phenomenon that GlaxoSmithKline, with its broad range of treatments, is in prime position to exploit.

This isn’t the only reason to pile in to GlaxoSmithKline today. Investors in the pharmaceuticals arena need to be prepared for long, frustrating and often extremely-expensive product launch delays in the event of poor testing data and/or the thumbs-down from regulators. The FTSE 100 firm has a great track record of getting its products to market relatively quickly, however, a critical quality in recent years as the business has suffered from crushing patent losses such as that of Advair.

Hospitals hero

Investors still concerned about the unpredictability surrounding drugs pipelines may be tempted to buy in to fellow Footsie share NMC Health (LSE: NMC) instead.

Like GlaxoSmithKline, the private healthcare provider is also in great shape to ride the boom of ageing citizens. It is, however, involved in offering a range of medical services from gynaecology and obstetrics though to drugs dispensing, although it is probably more famous for its hospital network which spans the United Arab Emirates.

In total NMC can actually boast a network of 185 facilities in 17 countries, a footprint that has been helped by rampant acquisition activity. It’s well placed to benefit from citizens’ booming wealth in the Emirates, but it is not content to rest on the exceptional emerging market revenues opportunities that it has. More specifically, it has stated its intention in recent times to get a slice of the fast-growing fertility clinic market and is looking to open a swathe of such clinics across Europe.

A pet pick

Looking at the business of healthcare though a different lens, Animalcare (LSE: ANCR) is a very-promising pharmaceuticals play focused on helping our sick four-legged friends. The business of providing medicines to both agricultural and companion animals is becoming increasingly large, and thanks to its exceptional product ranges things look exceptionally healthy for the AIM-quoted firm.

Animalcare’s operations have been given a huge boost following the acquisition of Ecuphar last year, a move that has boosted its geographical reach as well as its operational clout. The rationale of the move was underlined by news released this week that revenues from pet products jumped almost 70% year-on-year between January and June, to £23.6m.

And investors should be encouraged by the company’s vow to supercharge its position in the high-margin veterinary pharmaceuticals products arena. Its declining share price suggests that the market remains unconvinced right now, but I reckon the earnings outlook for the business remains extremely exciting.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended NMC Health. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »